IFX.DE runs into sellers again around 18.68
Infineon Technologies AG (IFX.DE) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
IFX.DE ended the week -8.11% lower at 18.14 after edging higher €0.06 (0.33%) today on high volume, slightly outperforming the DAX (-0.13%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (IFX.DE as at Oct 12, 2018):
Friday's trading range has been €0.62 (3.33%), that's slightly above the last trading month's daily average range of €0.62. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IFX.DE.
One bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move above 18.60 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 18.68. The last time this happened on October 4th, IFX.DE lost -2.03% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 19.64.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Infineon. Out of 126 times, IFX.DE closed higher 50.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 63.49% with an average market move of 1.14%.